The European Investment Bank (EIB) is lending CZK 500 million (approx. EUR 20 million) to the City of Olomouc in Central Moravia to finance municipal infrastructure projects involving the improvement, rehabilitation, upgrading and extension of the city’s infrastructure in the areas of transport, environmental protection, education, cultural heritage and other municipal services.

This long-term EIB loan, provided on favourable terms, will help Olomouc to finance projects under the city’s Strategic Development Plan 2007-2013. It will help to improve people’s quality of life and strengthen the city’s competitiveness. Some projects may also be supported by the EU Structural and Cohesion Funds.

The EIB funds will co-finance the construction of a 1.4 km twin-track tram line: “Nove Sady – Stage I”. This new infrastructure will improve the transport situation and the quality of the environment in the south-eastern part of Olomouc.

This loan represents a continuation of the successful cooperation between the EIB and the Municipality of Olomouc. In 2009 the Bank provided a loan of CZK 1 billion to Olomouc. This has been fully used for upgrading municipal infrastructure.

As part of its key objective of reinforcing economic and social cohesion within the Union, the EIB actively supports the development of the Czech regions and municipalities with long-term finance on favourable terms. Since 2005, the Bank has provided loans totaling nearly EUR 2 227 million to seven Czech regions and seven cities, including the capital city of Prague. These loans are frequently accompanied by grants from the EU Funds for implementing operational programmes in various sectors.

Background:

The EIB, the European Union’s long term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990 the EIB’s lending in the Czech Republic has reached some EUR 10.7 billion.